Brazil's Bradesco sees loan book growth, lower provisions this year

* Banco Bradesco SA , Brazil’s No. 2 private-sector bank by assets, announced on Thursday the following operating estimates for this year:

* Bradesco expects to grow lending between 1 percent and 5 percent this year, compared with an expansion of 8.6 percent in 2016.

* The bank forecasts interest income, or revenue from lending-related transactions, to expand between 3 percent and 7 percent this year. On a pro-forma basis, which accounts for the acquisition of HSBC Holdings Plc’s Brazilian unit, growth in loan-related revenues could either shrink as much as 4 percent or post zero growth.

* Bradesco forecasts fee income, or revenue from financial services and commissions, to grow between 12 percent and 16 percent this year. On a pro-forma basis, the bank set a target range between 7 percent and 11 percent.

* Bradesco forecasts non-interest expenses, or sales, general and administrative expenditures, to rise between 10 percent and 14 percent this year. Last year, they rose almost 18.5 percent due to the integration of HSBC Bank Brasil Banco Múltiplo SA.

* Insurance premium underwriting at Bradesco, which is also Brazil’s largest insurance group, is expected to grow between 6 percent and 10 percent this year.

* Bradesco also released a target for total loan-loss provision (LLP) expenses, which are expected to come in at between 21 billion reais and 24 billion reais ($6.7 billion and $7.7 billion) this year. Last year, LLP expenses ended the year up 43.3 percent at 21.739 billion reais - within the bank’s target of 22.5-25 billion reais. The estimate for LLPs includes loan recoveries, the bank said in a securities filing.